Mutebile Warns Banks Against Refusing to Reduce Interest Rates on Loans

Bank of Uganda Governor Emmanuel Tumusiime-Mutebile has warned commercial banks that the central bank may be forced to impose limits on interest rates they can charge on loans.Mutebile, who appears to make a U-turn from an earlier position that bank can charge borrowers based on their assessments, says he was disappointed that banks had refused to reduce charges on loans to spur growth.This is contained on July 7, 2020 letter to executive directors of commercial banks. Mutebile said: “The Bank [of Uganda] may, in consultation with the minister, by statutory instrument, prescribe – the maximum and minimum rates of interest and…